THE BELLE BLOG

2010-03-20T12:00:00.005-04:00

359 Jardinere Walk just reduced to $280,000...

2010-03-20T11:58:00.002-04:00

288 Mossy Oak Way just reduced to $274,900...

2010-03-08T12:30:00.004-05:00

Buyers: Have a look at this new listing in The Courtyard section of Belle Hall Plantation:

3 bedrooms, 2 baths, convenient location (walk to elementary school). Sought after school district, close to shopping, easy drive to Downtown, Charleston International Airport, Boeing, etc.

Contact me today to arrange a showing!

2010-01-30T11:10:00.004-05:00

Inventory Decreases in Belle Hall Plantation

Good news for Belle Hall homeowners: Inventory of single family, detached homes (SFD) has been steadily decreasing since reaching 69 active listings on the market in July 0f 2007 (and again in April of 2008). As of January 30, 2010, we have 38 homes in "Active" status on the MLS, and 5 more appear under contract.

Sales have been averaging between 4 and 5 a month in the last 12 months. Although we are still in a "buyers' market" and sales and inventory are seasonal (lower sales AND inventory levels during the Winter months are the "norm"), the trend is favorable to returning to a "balanced" real estate market (defined as a market with 6 months' inventory).

The following chart illustrates the current inventory (and its trend) vs. monthly sales for the past three years. If sales continue at least at the same monthly level than last year, is very plausible that Belle Hall may become one of the first neighborhoods in the Charleston Area to turn around and start experiencing appreciation in home values in the near future (i.e. this year!).

2009-11-19T17:53:00.006-05:00

The Charleston (SC) real estate market has experienced an important change in sales momentum. Fueled by low mortgage interest rates, improved housing affordability (lower home prices), the $8,000 Tax Credit for first-time home buyers and the prospect of increased employment with the future Boeing plant being built near the Charleston International Airport, year-over-year monthly sales (i.e. October 2009/October 2008) have shown increases for the past four months, for the first time since October of 2006!

As this chart shows, this "turn" in the market trend signals positive things to come for our real estate market. Higher monthly sales = accelerated inventory reduction = shorter time to market supply/demand stabilization.

What does this mean for any potential buyer or homeowner? While in the short term (Fall/Winter 09) the market may still look it is declining, this change of momentum means that next year there will be increased demand for homes in the area. As a buyer this means increased competition, which will prevent them from negotiating "incredible deals". As a seller, this is good news in the long term. The market will return to a "balanced" market once we hit 5-7 months' inventory, which will place sellers in a more balanced negotiating position (right now buyers have a notable advantage).

Of course, market momentum may shift again if any of the underlying variables shift. For example, the market may slow down again if interest rates shift upwards dramatically. However, at this point this seems unlikely, given that inflation is not yet on the Fed's radar screen. But you never know...

My advice for buyers: Don't wait! Take advantage of this window of opportunity now!
My advice for sellers: Can you hang in there for another 9-16 months? You may be able to get a better price for your home if you can wait...

2009-10-28T08:07:00.003-04:00

Great buys in Belle Hall!

With the soft real estate market, there are some great buying opportunities in Belle Hall Plantation. Four years ago, there were no listings in Belle Hall under $300,000. Today there are SEVEN listings under $300K!
There are also great buying opportunities in Hibben and Evian for more modern and upmarket homes. Follow this link for a list of current Belle Hall listings...
For more information on Belle Hall Plantation visit MyBelleHall.com

2009-08-02T19:26:00.002-04:00

Got $23 Million to Spare?

An incredibly expensive home just hit the Charleston MLS:

32 LEGARE ST. South of Broad (Downtown Charleston) was just listed for $23 Million! Maybe this is not a big deal in New York, San Francisco or Los Angeles, but for Charleston this is a huge price! More details here..

2009-07-31T07:15:00.004-04:00

Showings are at an 18-month high in Mt. Pleasant and also in Dorchester County (Summerville), according to data compiled by Centralized Showing Service, which records all showings booked for REALTORS via the MLS. Charleston (West Ashley) and areas of Berkeley County also exhibit a similar patter (see graphs). Because showings are an indicator of the level of buyer interest in the market, it can be used as a predictor for future sales, which will normally show up 2-3 months later.
Many factors may be contributing to this uptick in showings: Families are back from summer holidays, interest rates are still low, prices have continued to drop, and the $8,000 First-time Home Buyers' Tax Credit is encouraging renters to get in the game!

This is all good news that show the resiliency of our Charleston Area Market. I have always argued that Charleston is blessed because a) It is on the coast (almost everyobdy loves the beach); b) It has great weather (no snow); and c) Its economy is dependent on at least four different industries: Tourism & hospitality, logistics (the Port of Charleston), education (MUSC, College of Charleston, Charleston Southern University) and the military (Charleston Air Force Base, SPAWAR and the Naval Weapons Station). So our economy should rebound quicker than a similar sized single-industry town...

Read More Articles Like This One at http://www.BuyHomesInCharleston.com/blog.html

2009-07-23T15:19:00.001-04:00

This guide for first-time home buyers is intended to provide general information to help buyers be aware of the buying process, and to dispel any myths about buying a home. Please discuss your particular situation with the appropriate professionals before making any decisions.

So, You want to Buy a Home?
Since buying a home is a BIG financial commitment, many first-home buyers (and some repeat buyers) feel very intimidated by the whole process, which, in itself is rather uncomplicated, but it involves a lot of small steps, that, if not done right, can produce expensive mistakes.

In my 12 years in Real Estate I have dealt with many types of buyers and different scenarios, so I have developed a "method" to reduce stress and ensure success. Here's a brief synopsis of my recommended "Buying Process".

STEP 1 - Hire a REALTOR to Represent You
In SC, buyers can hire their own Buyer's Agent, normally at no cost to them. Once you hire a REALTOR as your Buyer's Agent, this person has a FIDUCIARY responsibility to represent you and protect your best interests. Buying a home is a "joint project" between you and your REALTOR. Make sure you establish a mutually agreeable communication pattern and that you have clear expectations of each other's responsibilities.

STEP 2 - Show Me the Money
Whether you are single and about to buy a home on your own, or (even more so) a couple with kids, money is always one of the crucial factors to explore upfront. Ask yourself these questions:

What's the total monthly payment that you would feel comfortable with, without stretching your finances or cramping your style?
Do you have an "emergency fund" in case there's a hiccup (loss of income, emergency, etc.)?
How much money do you have to put down toward the purchase?
Now, it's time to get PRE-APPROVED. Contact a local lender and they will be able to walk you through an application. The lending officer will review your INCOME, EXPENSES, ASSETS and LIABILITIES, plus your CREDIT SCORE. Based on a formula that takes into consideration several factors, the lender will tell you HOW MUCH is the maximum purchase price and loan amount you can have, the amount you must have ready for your down payment and your estimated MONTHLY PAYMENT.

Ask for a written PRE-APPROVAL letter and how long it is valid for. Keep in mind that (especially in this market) such a letter is often required by Sellers, and will give more weight to any offer you make.

STEP 3 - Define Your Needs and Wants
Some buyers do not have a clear picture of what they want, and in a "buyer's market", where there are literally thousands of available homes, they can get confused and frustrated quite easily. I recommend that you write down your needs and wants, and rank them in priority, for example:

MY/OUR BUYING CRITERIA

NEED (must have): Min. 3-bedrooms, "excellent" rated schools, 2,000 sq. ft., under $200,000, within a 45-minute drive to/from work.
WANT (would like to have): Community pool, bonus (FROG) room, 2-car garage.
NOTE: If there is more than one decision maker, make sure you all agree on at least the NEEDS column. It is important that you share these criteria and priorities with your REALTOR, to help him/her give you better selection of properties and provide better advice.

Next: Searching for a home and negotiating a contract....

2009-07-08T14:50:00.006-04:00

SHOWINGS & PETS
Most of us REALTORS® are animal lovers and have pets of our own, but we also share many stories about showing homes where our clients went into a sneezing fit, we got bitten by a cantankerous furry creature, or opened the front door only to helplessly see a cute kitty scoot toward the nearest busy street.

It is essential to take pets into consideration if you put your house on the market. Make sure you work out the showing arrangements/instructions carefully with your REALTOR®, since it is important for showing agents to know what to expect inside your home. Buyers could potentially be allergic or scared of cats or dogs (especially if they bring children along).

Although most pets are harmless, they may hinder the buyers' experience and put a "negative aura" for your home in their minds. It is difficult to get a buyer excited about your home if he or she is sneezing continuously or unwilling to cross the threshold because your dog is barking away intruders.

One of my fellow agents has this great listing in Mount Pleasant, popular price range, great location, priced right. Yet she has had the hardest time selling it because the owner refuses to clean up after his cat, and the house smells terrible! This home should have sold months ago, if this issue had been handled appropriately...

If your agent knows there might be a problem, you may wish to walk or cage your dog, vacuum the cat hairballs or do whatever is necessary to make sure that the showing goes smoothly.

2009-02-22T17:00:00.003-05:00

Is the new $8K tax credit useful? Will it do THE JOB it was designed to do?

I'd like to find out what people think...is this federal program a good one, or is it just providing "lip service" to people concerned about the housing market?

Here's an article that appeared on CNN that describes the tax credit:

http://money.cnn.com/2009/02/13/real_estate/homebuyer_tax_credit_finalized/index.htm

What do you think?

2009-02-12T17:07:00.002-05:00

Increased showing activity in Mt Pleasant will lead to more sales in the next two months...

2008-12-18T11:29:00.001-05:00

ARE YOU BEHIND IN YOUR MORTGAGE PAYMENTS?
DO YOU NEED TO SELL YOUR HOME?
DO YOU OWE THE BANK MORE THAN YOU CAN GET FOR YOUR HOME?

What are your OPTIONS?

Many people are not aware that they have a few options to explore when they are facing these situations. Some people just give up and abandon the house for the bank to take it over. Before you do this, it is important to explore other options that may affect your credit and personal finances less than foreclosure.

The first thing you have to find out is who owns your loan note (it may be different from the lender who sold you the loan and/or different from the company who services the loan). Once you find out who is holding your loan, you may want to call their LOSS MITIGATION DEPARTMENT, which specializes in dealing with these matters.

Notes: I am assuming that when you took the loan you were properly informed of the conditions, and that your lender performed all required disclosures as required by the Truth In Lending Act (if you feel you were not informed properly, or believe there was fraud involved in your loan, you have legal recourses you can pursue). Also, some of these options may have tax implications for you. If the lender accepts a short sale, the amount of principal they “forgive” may be counted as income for your tax return. It is essential to consult with your CPA and attorney before taking final action.

Option 1: LOAN FORBEARANCE Depending on your circumstances, a “temporary fix” option you might wish to consider as a way to prevent foreclosure is mortgage forbearance. This option is commonly used for temporary financial hardship situations such as short periods of unemployment or poor health. Mortgage forbearance enables you to temporarily stop making your mortgage payments. However, interest on your loan continues to accumulate and is added to the remaining principal balance of the loan. You are generally also asked to sign a forbearance agreement that states when the lender will require you to pay the amount you owe. Once the forbearance period comes to an end, you are once again obliged to make full payments on your home loan.

Option 2: LOAN MODIFICATION If your mortgage interest has readjusted upward (as in an ARM) and you cannot afford the new payment, or you are having trouble paying your mortgage and you are in a high-interest loan and cannot refinance, your lender may consider changing the terms of your loan to help you. Some of the factors that your lender will consider are: Nature of the hardship that is causing your mortgage payment problems; the amount of equity you have in the property; your ability to pay the mortgage; the amount owed on the mortgage; and mainly, what is financially better for them – whether to foreclose or pursue a loan workout with you or modify your loan.

Option 3: DEED EN LIEU OF FORECLOSURE This option basically provides a “free out of jail card” for the homeowner, who agrees to give the property back to the lender if the lender agrees to forgive the debt that was secured with the real estate. Deed-en-lieu-of-foreclosure is only approved by lenders in certain hardship circumstances (conditions vary according to each lender). Both sides have to enter the transaction voluntarily and in good faith. The property needs to be transferred at a fair market value.

Option 4: SHORT SALE In a declining real estate market, it is quite common for homeowners to owe more on their home than what they can net from sale at a “fair market price”, especially if they haven’t lived long in their home. In many cases you can still sell your home, provided that the lender(s) and other lienholders approve a short sale, where they are paid less than they are owed. Any other liens affecting the property (including mechanics’ liens, tax liens and any judgments against you, the owner) will have to be cleared to be able to “short-sell” the property.

Option 5: RE-FINANCE If you are in a situation where your loan is at a high interest rate, you may wish to consider re-financing (with the same or with a different lender) to lower your monthly payments. However, in the last two years the guidelines for re-financing have changed, making it impossible for some homeowners to re-finance their mortgage. The main recent changes affecting your ability to re-finance are: Declining home values; reduced loan-to-value and debt-to-income ratios; your payment capability and your credit score.

Option 6: FORECLOSURE Foreclosure is a legal process whereby the lender(s) exercise their right to take possession of your home and kick you out for not honoring your commitment to pay the loan(s). This is a slow process (in SC it can take from 6+ months) and it is expensive for the lender. It also affects the homeowner’s credit substantially and for a long period of time. If you fail to pay your loan on time, you will first receive written notices that you are in default and warning you to pay or face foreclosure. After a few months (depending on the lender), they will issue a notice of their intention to foreclose. The case will be handed over to an attorney, who will file suit to foreclose and will file a lis pendens notice at the County Courthouse. Once the court rules the property will be sold to the highest bidder at public auction on the courthouse steps. If you are still living in the house, the new owner will file a motion to evict you.

Option 7: BANKRUPTCY In some particular cases, the only option that may make sense to you will be to file bankruptcy. The latest changes to the bankruptcy law make it a bit harder for some to file bankruptcy. Some filers with higher incomes won't be allowed to use Chapter 7, but will instead have to repay some of their debt under Chapter 13. You will have to get credit counseling before you can file a bankruptcy case. And, because the law imposes new requirements on lawyers, it may be tougher to find a bankruptcy attorney.

Alan Donald is a bilingual REALTOR® with Keller Williams Realty in Charleston, SC.You can ask him questions by sending him an email to adonald@kwcharleston.com or by visiting his website at www.BuyHomesInCharleston.com .

2008-11-27T11:47:00.005-05:00

TO "LOCK" OR TO "FLOAT"?

It is very important for home buyers or for those who want to re-finance to be aware that in these volatile financial markets we are living in, interest rates on mortgages can fluctuate substantially in a matter of hours! I have heard many stories from mortgage lenders about how they were able to lock a fantastic interest rate for a loan using a 2-3 hour "window of opportunity" that disappeared afterward, or others that missed out because they floated the loan (to "float" means to let the interest rate fluctuate with the market). Understanding how "locking-in" a rate works may help you evaluate your options and could result in thousands of dollars in savings!

So, what is a "lock"? A lock is a GUARANTEE from a lender that if you close your loan within a stipulated time (usually 30 days), the note on your loan (i.e. the nominal interest rate) will be set at a specific interest rate.

When you ask a lender for a quote (also called a "Good Faith Estimate" or GFE), you can ask how long the rate is good for. Bear in mind that until you lock the interest rate, it can (and probably will) change. If you think you need more time to close the transaction, ask the lender for an adjusted rate quote. If you are afraid that interest rates may rise, lock your rate now (rate locks are recommended when interest rates are on the rise, to avoid ending up with higher monthly payment than anticipated). Floating the loan in a volatile market is a gamble - you may win if rates drop, but you may also lose if they go up.

What many people don't know is that long-term mortgage rates don't depend on the inter-bank rates set by the Federal Reserve Bank. This rate normally affects only short-term lending (such as credit cards, car loans, home equity lines, etc.). Long-term rates depend on the behavior of the financial (stock & bond) markets. Thus, if bonds are in high demand, mortgage rates drop.

Professional mortgage representatives are constantly checking the financial markets and related news releases to be able to predict future movements in interest rates. Ask your lender to keep an eye out for a favorable rate to lock in your loan! This is one of the reasons why it is very important to pick a very sharp and experienced mortgage representative (if you ever have the need for one, I can recommend several...)

2008-11-22T18:40:00.003-05:00

COMMERCIAL REAL ESTATE - ALSO GOING SOUTH?

Today I was reading an NAR update on Commercial Real Estate (CRE) - it seems that CRE is following the path that Residential Real Estate took two years ago!

Donald Trump just asked for more time to pay his $770 million in construction loans on his Chicago Tower. Many of the leading commercial developers are having difficulties making the payments on their construction loans because absorption has been slower than expected (when the economy slows down = fewer jobs = less need for space).

To add insult to injury, we'll see many banks suffering from defaults in their commercial loan portfolio next year... this is not good news for residential real estate either - more defaults = more restrictive credit for everyone.

On the flip side, Wall Street woes and unpredictability may convince investors that, after all, real estate is a great long-term leveraged investment!

2008-10-31T13:55:00.002-04:00

REVERSE MORTGAGE PROGRAM UPDATED

The Daily Real Estate News reported today that the limit for FHA-backed reverse mortgages (or Home Equity Conversion Mortgages - HECMs) had been increased to $417,000.
This new regulation also places a 2% cap on origination fees for the first $200K of the loan amount, or a 1% cap for higher amounts, with a $6,000 limit (adjustable for inflation).
Senior citizens will be allowed to use HECMs to purchase a new property, and lenders will no longer be allowed to sell annuities and other financial products along with the mortgage.
I think this will increase the flexibility for those seniors (like my own parents) who are “house-rich” but “cash poor”. Good move!!

2008-09-19T16:25:00.000-04:00

WHAT’S HAPPENING TO THE MORTGAGE MARKETS? (Sept. 18, 2008)

On the positive side, Freddie Mac reported that 30-year fixed rate mortgages fell this week for the 5th consecutive week. According to the Mortgage Bankers Association (MBA), lenders saw a 58 % surge in mortgage applications since August 15th, led by a 122 % surge in re-financing applications. Fixed-rate mortgages are currently the predominant choice (95 % of all new applications) among home buyers. Applications for adjustable rate mortgages (ARMs) have fallen by almost 50 % since the end of last year.

After the government takeover of Freddie and Fannie last week, rates came down substantially (by almost 1%). We are now experiencing very low 30-yr rates (similar to 4 years ago). Definitely a great relief for potential buyers, and a great opportunity for refinancing higher interest loans.

On the other hand, there are a multitude of negative factors affecting the eligibility of buyers to get a loan. The Downpayment Assistance Programs (DAPs), that allowed 100% financing, are disappearing as of October 1st. Mortgage insurance rates are going to be drive (upward, I imagine) by credit scores. And lender underwriters went from one extreme (you just had to fog a mirror to get 100% financing three years ago), to the other (demanding an overwhelming amount of information and questioning issues that verge on the ridiculous for event low LTV loans).

So, on one hand we have great interest rates that should drive demand for housing up. On the other hand, it is difficult to qualify for those loans.

Where are we going? This is my crystal ball: I believe lenders will finally realize that they are in the business of lending money, not just in the business of avoiding losses. If they make it very difficult for buyers, their lending business will die. So they will probably start to relax their guidelines and requirements a little next year. I also believe that inflationary pressures are evident, and when inflation goes up, it affects negatively the stock and the bond markets, so I believe we’ll see mortgage rates creeping back up after the presidential election.

The next six months will be a great window of opportunity for buyers and investors who wish to buy inexpensive properties and get low interest rates. Beyond six months, it is hard to say… In the long term (4+ years), I believe real estate will prove that it is still one of the best and most stable investments around (look at the S&P 500 roller-coaster this week!)

2008-09-16T16:23:00.002-04:00

REAL ESTATE JOKE OF THE MONTH

A client bought a new home and the broker ordered some flowers to be sent to him for the occasion. They arrived at the home and the owner read the card; it said "Rest in Peace".

The owner was angry and called the florist to complain. After he had told the florist of the obvious mistake and how angry he was, the florist said:

"Sir, I'm really sorry for the mistake, but rather than getting angry you should imagine this: somewhere there is a funeral taking place today, and they have flowers with a note saying, "Congratulations on Your New Home".

2008-09-16T15:13:00.004-04:00

HOUSING AND ECONOMIC RECOVERY ACT OF 2008 - A MIXED BAG!

Although it has been heralded as a piece of "life-saving" legislation for the housing market, The Housing and Economic Recovery Act of 2008 that will kick in on October 1st contains some important provisions that will affect our industry adversely:

It eliminates DAP (downpayment assistance programs) that allowed buyers to borrow 100% of the purchase price. While this makes sense from a risk-based analysis point of view (these types of loans defaulted at a much higher rate than loans where the buyer actually puts in a downpayment out of their own money) it does not stimulate the housing industry by restricting first-home buyers, who are the ones supporting the whole housing "food chain". No one disputes that homeowners have more to lose if they have a downpayment, so maybe they will "try harder" to make ends meet when the going gets tough. But a responsible, stable income buyer will be a better credit risk than an irresponsible buyer with a downpayment.

Comment: I believe that this provision will affect the demand from first-home buyers substantially. In this economic climate it is very difficult for a person with moderate to low income to save any substantial amount for a downpayment. A more equitable and fair way of determining default risk and access to use these types of programs would be by looking at the buyer's ability to pay (income & employment history) and financial responsibility track record (i.e. credit scores).

It amends Section 121 of the Internal Revenue Code (which is the exclusion that allows homeowners to sell their qualifying primary residence and exclude up to $250,000 ($500,000 for a couple) of capital gain from capital gains tax. Many savvy investors were combining this exclusion with the 1031 exchange provisions to build up equity via several 1031 exchange transactions, and then convert this investment property to a primary residence to take advantage of the capital gain break. With this amendment, Section 121 no longer permits homeowners to take advantage of the full tax-free exclusion on the sale of a home that was their primary residence if there was a non-qualified use of the property (i.e. investment) prior to being held as primary residence.

Comment: I believe this amendment is just closing a loophole that only savvy investors with high net worth were using, so I am OK with it. However, it will restrict the demand for investment property transacted with investors looking to maximize their tax-free equity, and the sale of homes via 1031 exchanges.

It provides up to $7,500 in tax credits for first home buyers (or individuals who have not owned a home in the last 3 years). While this is being publicized as a "great thing" for our industry, this amount is only an interest-free loan for a 15-year period.

My opinion: People with irresponsible credit behavior will be lured into home ownership by the shine of this tax credit (we are already seeing many volume builders advertising this credit) , will spend the $7,500 on consumer goods when they receive it, and increase their indebtness to the point of default. I believe it is our duty as REALTORS to point out to our clients that they will have to pay this amount back, and strongly suggest that they use the $7,500 instead to pay off high interest credit lines, or principal off their mortgage to shorten the life of the loan, build equity and have some forced savings.

2008-09-09T16:31:00.002-04:00

ROAD IMPROVEMENTS PAVE THE WAY FOR MAGNOLIA
(Charleston Daily Journal)

Magnolia Development LLC has chosen two general contractors to begin road improvements in the upper peninsula area where it plans to build a large, mixed-use community on about 150 acres of highland. Workers are expected to begin constructing a 1,400-foot bridge and refurbishing three nearby roads next month.

2008-09-09T16:28:00.001-04:00

COURT UPHOLDS SMOKING BAN, STRIKES PENALTY
(Charleston Daily Journal)

The town of Sullivan's Island's attorney said the ruling reaffirms local governments' authority to ban smoking. Though the original penalty was ruled unconstitutional, the town earlier this year changed it to comply with state law.

2008-06-23T11:32:00.002-04:00

HOW DO YOU DEFINE QUALITY SERVICE?

For every business (especially for those of us in professional services) client satisfaction guarantees future success.

Happy clients bring more clients, and a great reputation in the marketplace (especially in a small market like Charleston’s) is a very desirable asset. It is essential to have business strategies and practices that result in repeat business and word-of-mouth referrals from our client base.

So, how does one make sure that clients are happy? Obviously, we need to provide them with “outstanding service”. The problem is that not everyone is on the same page when it comes to defining “outstanding service”. In order to avoid disappointing clients, I recommend following these guidelines:

Clarify mutual expectations from the beginning. Ask your clients what they expect from your service, as well as letting them know what you expect from them. This way everyone will know what to expect, and you can EXCEED your clients’ expectations.
Educate your clients. Explain the whole process from A to Z and identify the most common potential problems, so that they don’t get surprised if they happen.
Keep in constant communication. The worst you can do when there is a problem is to avoid communicating with your clients, thinking the problem may just go away, or that you may be able to solve it without their involvement. It is much better to let them know what the problem is, why it is happening, and how you are working to resolve it.
Assume responsibility. If there is an unforeseen event that affects the process, assume responsibility (even if it is someone else’s fault) and try to provide proactive solutions.
Be honest. Your clients will appreciate your honesty, even if the news that you bring are not favorable to them.
Show genuine interest for your clients. Give them personalized attention and be sensitive to their personal situation. This will set you apart from other service providers and will provide the “personal touch” that will remain in your clients’ memories looking forward.

2008-03-06T19:38:00.004-05:00

You Can Now Buy a Home in Belle Hall Using an FHA Loan!

As of today, the Federal Housing Administration (FHA) loan limit was raised from $268,000 to $335,000!

Now buyers can buy some homes in Belle Hall using this program, which currently is the most flexible available for buyers...

2008-03-06T19:19:00.004-05:00

7 Deadly Sellers' Sins

Adapted from " The 7 Deadly Sins Your Sellers May Be Committing" By Thomas M. Mitchell as published in National Realty News, March 6, 2008

So, what's the biggest mistake home sellers make? Thinking that potential buyers will walk into their home and just love the way they have decorated. Wrong.

Here is what the Accredited Home Staging Council refers to as the Seven Deadly Sins of Staging. Do you know any sellers guilty of any of these potential deal breakers?

Failure to thoroughly deep clean the home – especially the kitchen and bathrooms.
Failure to de-clutter the entire home.
Failure to de-personalize the entire home.
Failure to use neutral colors when painting both inside and outside.
Failure to spotlessly clean the windows and window coverings.
Failure to make the pets disappear.
Failure to spruce up the number one calling card – the landscaping.

2008-02-29T07:13:00.002-05:00

What is a Market Analysis?

Setting the right price is probably the most important step in the process of selling a home, and this is especially true in an over-supplied (buyer’s) market, where price and condition sometimes are as important as location in the eyes of the buyers.

So, how do you arrive at the “right” price for your home? Is it necessary to spend $300 to $400 for a professional appraisal of your property before placing your home on the market?

Please note that a professional appraiser's opinion of a property's market value is based on the recent comparable sales (comps) of similar homes in the neighborhood, adjusted by the square footage, condition and features of the property. Different appraisers may come up with different figures. Even if all of them agreed on a value, there is no guarantee that you would receive that amount for your property.

An alternative to a professional appraisal is to ask an experienced, professional REALTOR for a written market analysis of your home. This market analysis may include:

· general market area and neighborhood trends and statistics;

· information about recent home sales in your neighborhood (the facts of what has actually happened);

· information about current “active” homes listed for sale on the MLS, similar to yours in location and size (the competition); and

· information about “withdrawn” and “expired” homes in your neighborhood (what has not sold)

A REALTOR like myself may provide this service free of charge or obligation. If you are still unsure of the value of your home, you may wish to pay for a formal appraisal.

Please keep in mind that while appraisals and market analyses give you reasonable guidelines, the actual value of your home is determined by the market, and not by what you, the appraiser or the REALTOR^Òthink the home is worth.

Strategic pricing is one of the very important services that your REALTOR should offer to be able to achieve your selling objectives.

2008-02-12T08:32:00.000-05:00

Should you Buy Now, or Should You Wait?
I read this interesting article on MSN about when to buy now and when to wait. Here is the summary:

BUY NOW IF:

Prices in the neighborhood you are interested in are relatively stable. Either they are holding their own or increasing, or the pace of decline is slowing significantly. If you have to move and don't like apartments, the small penalty you pay for missing the bottom may not mean much.
You plan to stay in the home for more than five years. If you can stick it out that long before selling, economists say you’ll probably ride out any downturn and come out ahead on price.
Your rent rivals a mortgage payment. If you can afford to buy, it can give you one bonus that renting can't: the mortgage-interest deduction on your taxes.
You've found the right house in the right area for you. The schools are great. You love the area and know it would be hard to find another house like the one you have your eye on. In a better market, you would most likely have much more competition for that home.
You've built equity in your house and are moving to a place where homes are cheaper. In your new market, your money will go a lot further.

WAIT TO BUY IF:

You've lived in your house less than two years. Chances are you haven't had enough time to accumulate equity in your home. Indeed, you may have negative equity, if you live in many areas such as California, Florida, Arizona or Nevada.

Your job security is uncertain. If your company or business is in distress, it's probably better to stay put until the smoke clears.

You don't plan to stay in your next house at least five years. While it's not important to buy at the exact bottom of the market, it is important to stay long enough to ride it out completely.

You don't have good credit or a decent down payment. Do you have a job and income you can document? As a result of the subprime lending crisis, lenders are much more careful about whom they're giving their money to.

You have an existing home to sell in a neighborhood where prices are dropping precipitously or where the number of foreclosures is spiking. In this climate, you're probably better off waiting out the storm.

Click HERE to read the full article.

2008-02-05T14:19:00.000-05:00

Homeowners in Distress

These days everyone is talking about foreclosures and buying distressed properties, the fallout from the sub-prime mortgage debacle.

What many people don't know:

The process a property goes through before and after the lender takes control of it
The issues, players, risks and opportunities involved in purchasing a property in distress

This tends to be a common path for an owner in distress:

The owner defaults on the loan (stops paying mortage payments)
The lender sends several letters warning owners they are in default and telling them they will foreclose if not brought up to date.
The lender places a "lis pendens" on the title of the property. This is a clear indication that the lender plans to get control of the property.
The lender forecloses on the property and takes control.
The property is auctioned to the highest bidder at the courthouse steps. If no bids match or exceed what the first mortgagee wants to net, the first mortgagee usually "buys back" the property and evicts the former owner.
The property becomes a "Real Estate Owned" (REO) property and is offered for sale by the lender.

2008-01-25T15:32:00.000-05:00

House OKs Lift on Fannie, Freddie Loan Limits
The economic stimulus package hammered out between the White House and Congress on Thursday lifts the size of home loans that may be bought or insured by Fannie Mae and Freddie Mac.The Fannie/Freddie cap would rise to $729,750 for one year. Currently Fannie and Freddie are capped at $417,000.

The measure also would permit the Federal Housing Administration to indefinitely insure loans up to that same level. Currently, FHA loans may not exceed $367,000.“The stimulus package announced today is a positive step toward strengthening the housing market and our economy," NAR President Dick Gaylord said in a public statement. "The increase in loan limits should provide liquidity to the mortgage market in all parts of the country allowing qualified home buyers who may have been on the sidelines to enter the market."

The measure is also expected to make jumbo loans more affordable because it will make them more attractive to investors, who since summer have shunned home loans that don’t pass through Freddie or Fannie.“In high-cost states, many home buyers with good credit could save $3,000 to $5,000 per year by not being forced into the current jumbo mortgage market," Gaylord said. "Currently, only families in lower cost areas are able to qualify for these types of affordable loans.

Such a move would stimulate home sales and help stem the rise in foreclosures, reducing the number of foreclosures by as much as 210,000."In particular, prospective home buyers in costly regions like California, Northern Virginia, and New York have faced higher mortgage rates and tougher loan terms, and those areas would get relief under the plan, says Susan Wachter, a professor of real estate and finance at the Wharton School of the University of Pennsylvania.

"This is meaningful because the mortgage crisis and meltdown is geographically concentrated," she says. "This response will assist the stressed areas."

Source: Reuters, Patrick Rucker (01/24/08) and REALTOR Magazine Online

2008-01-23T12:38:00.001-05:00

Real estate rates fall overnight

30-year fixed rate at 5.31%; 10-year Treasury yield at 3.44%

Wednesday, January 23, 2008 source: Inman News

Long-term mortgage interest rates dropped Tuesday, and the benchmark 10-year Treasury bond yield tumbled to 3.44 percent.

The 30-year fixed-rate average sank to 5.31 percent, and the 15-year fixed rate fell to 4.82 percent. The 1-year adjustable rate dipped to 5.25 percent.

The 30-year Treasury bond yield was down to 4.2 percent.

Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.

Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.

***

2008-01-16T13:32:00.000-05:00

Mt. Pleasant Market Update – January, 2008

Has the single family home market hit bottom yet?

This is the most common question in everyone’s minds right now. Sellers are anxious to see their home sold, buyers are anxious to buy, but don’t want to lose equity by buying in a declining market, and investors are waiting for the cycle to turn around to start re-investing in property.

Although picking the bottom of the housing market is as difficult as predicting the stock market, there are some encouraging signs that point to a recovery during 2008. The following charts show statistics for single family homes in Mt. Pleasant (MLS Areas 41 and 42), taken from the MLS.

As the above chart shows, inventory is still very high, although, for the PAST FIVE MONTHS inventory has been slowly declining. I believe this encouraging sign is due to several factors:

Sellers have finally realized they are not going to get the price they were expecting (based on the 2005 market), and they are withdrawing their home from the market;
There is very little new speculative construction going on; and
Re-sales are continuing to happen (at the 2003/04 level).

We Were Spoiled!

In Mt. Pleasant we had such a good market during the last 4 to 5 years before this downturn, that everyone expected to place their home on the market and sell it in two weeks! While this was true at the peak of the market in the Summer of 2005 (see the following chart), today the average time to sell a home in Mt Pleasant has risen to almost 160 days. This is also due, in my opinion, to several factors:

Much higher inventory levels mean that, on average, any single home will take longer to “get its turn” to sell if the demand stays the same.
Notable exceptions to this rule are homes that are priced aggressively from the onset. Those homes are still selling quickly.
Buyers are more cautious and are generally looking around for a much longer time before making a decision.

Another factor that has changed is the “negotiability” of list prices (see next chart). While in 2004 the average Sale Price/List Price ratio was above 99%, today it is around 95%, which means that buyers are negotiating harder and getting better deals than before.

And the current ratio is probably underestimated, given that it is calculated based on the LAST list price before the home goes under contract. If this ratio was based on the original asking price (like in 2004) it would be much lower. The chart also shows how sellers become more negotiable in the slow winter season, and

less negotiable in the busy summer season (demand-driven).

The “Months of Inventory” indicator shows that Mt. Pleasant is still in a “buyers’ market”. This number is calculated by dividing the total number of available listings by the number of listings sold every month. It is used as a measure of the average time that it would take to sell all the available inventory.

From May 2003 until January 2006, the market had just 2-3 months of inventory (a sellers’ market). From that time it started to climb steadily, until reaching a peak of 18 months in October, 2007.

Although it is encouraging that this number has come down during the “slow” winter season, we’ll have to wait another 2 to 3 months to be able to tell if the market has indeed turned for the better.

Future Outlook

My prognosis for this year is positive, for the following reasons:

Interest rates have come down to the lowest level in 5 years – this will encourage “hesitant” buyers to jump in.
Prices have come down and sellers are a lot more realistic than a year ago. Sellers who are motivated to sell will price their homes strategically and those homes will sell first. Real estate is cyclical, prices will come back up, following the basic supply and demand theory (more people, same amount of land available)
There are virtually no new homes being built at the moment in Mt Pleasant, so the existing home inventory will begin to decrease.
We are still receiving many out-of-town and out-of-state buyers who are interested in living in Mt Pleasant.

Potential risks that can affect the recovery of our real estate market:

The sub-prime debacle is far from over. I believe we’ll see more foreclosures and tightening of lending standards this year. I believe the numbers are not significant enough to affect the market, but negative media attention does affect the public’s perception.
Consumer spending/credit crisis – Many consumers have been funding their credit purchases with their home equity. As real estate markets decline and this equity disappears, this may cause economic hardship which may lead to a national recession.
The presidential election – Markets are always unsettled in an election year.
The hurricane season – Although the past season was a non-event for Charleston, a major hurricane will affect the property market.

Source: Charleston Trident MLS – information deemed reliable but not guaranteed.

Disclaimer: This analysis constitutes a market opinion and should not be construed as investment advice. Prospective buyers, sellers and investors must rely on their own research and interpretation of facts to base their decisions.

Charleston Market Update

2007-12-22T18:10:00.000-05:00

Overall, the Charleston market, although it has seen an increase in available inventory and the average time it takes to sell a listing, remains relatively healthy. The median price has remained unchanged, but the level of activity still shows market resilience given all the industry turmoil at the national level and the sub-prime loan crisis.

Excepting for the time on market, Mt. Pleasant showed a stable (but soft) market. However, the decrease in inventory is an encouraging sign that may indicate bottoming out. If inventory continues to decrease in early Spring, Mt. Pleasant is poised to be one of the first sub-markets in the Charleston area to recover from the downturn (it was also one of the first submarkets to be hit). Some people believe that Mt Pleasant and Daniel Island are the "Californias" of the Charleston metro area (i.e. the trend-setters).

The Summerville market remains reasonably strong, although a little weaker. Problems with local traffic have led Dorchester County to enact a "new development freeze" for 6 months to let it catch up with infrastructure development.

The Goose Creek market continues to move forward, attracting new developments and new industry. However, the significant increase in available inventory may signal further price softening to come next year.

NEW SELLING STRATEGIES FOR THIS MARKET

2007-12-21T10:18:00.000-05:00

With the dramatic increase in inventory in Mt Pleasant during the last 18 months, Sellers (and when I say "Sellers" I mean those people who ARE motivated to sell, not those who just want to "test" the market) must understand that they need to use different strategies to succeed.

No one can control the market. Sellers must accept that they can only control two things: Price and condition.

In a "Sellers' market" like we were living in 2005 (when we had very little available supply), Sellers could ignore any deferred maintenance issues and still receive multiple offers within days of listing the home. Sellers could price their home anywhere (within reason) and buyers would often agree to pay prices above their list price.

It is a "Buyers' market" now, and motivated Sellers must change their strategies if they wish to succeed:

1. Condition: Buyers are very picky and they have lots of homes to choose from! Sellers must take care of all deferred maintenance issues, replace tired-looking carpet, paint, landscape and stage their home to put "their best foot" forward from day one. Their home must be in perfect condition and present like a model home - otherwise it may take a long time to sell!

2. Price: Sellers cannot "test the market" any longer by pricing the home in the "middle of the pack". Nowadays it makes no sense to start higher and "be willing" to reduce the price over time gradually. This strategy will result in them "chasing the market from behind" unsuccessfully. They need to price their home aggressively to start with. Look at the competition, pick the 2-3 listings that are most similar to theirs, and price their home significantly below (3%-5%) from the beginning. They also need to make sure that their List Price is at or below recent comparable sales in the area. Otherwise they may get a nasty surprise when the Buyer's bank orders the appraisal, since these days, after the sub-prime meltdown, appraisers are very conservative!

In the end, Sellers who pick this strategy will sell first, and probably for a higher price (in a declining market, as time goes by, prices decrease). Sellers who decide not to choose an aggressive pricing strategy to start with end up getting caught in the "downward spiral" of a neighborhood, where all competitors start lowering their prices gradually, and everyone ends up in the same boat (worse off)!

CITY OF CHARLESTON RAISES PROPERTY TAXES

2007-12-19T15:20:00.000-05:00

The Daily Journal reports:

Charleston raises property taxes

By Scott Miller , Staff Writer

Property tax bills in Charleston will rise about 4.5% next fall now that the City Council has approved the first tax increase since 1999.

Critics at Tuesday’s council meeting, when the increase was passed, said the city was taxing low-income property owners out of town. But Mayor Joseph P. Riley Jr. said additional money is needed to fund improvements to the fire department.

The fiscal 2008 budget includes $2.6 million in new taxes and $2.4 million in fire department upgrades, a direct response to the June 18 Sofa Super Store blaze that killed nine firefighters.

The budget creates positions for 18 additional firefighters, six new dispatchers, four training officers, four inspection employees, new vehicles and equipment, among other upgrades. The $143.9 million budget, a 9% increase from last year, raises the property tax rate by 3.3 mills, or 4.5%, to 77.1 mills. A mill is equivalent to one dollar for every $1,000 of assessed property value.

The owner of a home assessed at $175,000—a figure Riley used when discussing the tax increase—will pay an additional $23 annually. The owner of commercial property valued at $500,000 in Charleston will pay $99 more. Commercial property owners will pay more because their property is taxed at 6% of market value rather than at 4%.

No one spoke during a public hearing on the budget two weeks ago, but a handful of residents denounced the tax increase Tuesday. One was a Charleston real estate broker who led the successful statewide effort to replace property tax revenue with a sales tax increase to fund schools.

“Even now, with the relief we’ve gotten, taxes are still too high,” said Emerson Read, chairman of nohometax.org. “This is going to affect mostly low- and middle-income (residents), first-time home buyers and elderly retired people.”

Resident Jack Simmons agreed, saying the city was taxing people out of town.

“One of our basic freedoms is the ability to own a home,” he told the council.

Riley called the tax increase “a last resort” and again noted that the city has cut taxes 12 times since 1990.

Council members Henry Fishburne and Larry Shirley voted against the tax increase. Council members Deborah Morinelli, James Lewis Jr., Robert Mitchell, Jimmy Gallant, Wendell Gilliard, Louis Waring, Yvonne Evans, Paul Tinkler, Anne Francis Bleeker and Kathleen Wilson voted in favor.

Fishburne said the city could have trimmed fat in the budget, possibly by lowering the 2.5% salary increases given to city employees. He had previously argued that City Council does not receive enough time to evaluate the mayor’s budget proposals. Riley introduced his proposed budget about a month ago.

CHARLESTON MARKET IMPROVES SLIGHTLY

2007-12-11T19:16:00.000-05:00

Here is a press release from the Charleston Trident Association of Realtors that has not made headlines (yet?)

Median Price Rises, Inventory Declines

Date: 11/12/2007

Charleston, S.C. (November 12, 2007) –– The median sales price of a home in the Charleston area rose for the second month in a row to $208,705, reports the Charleston Trident Association of REALTORS® (CTAR). The median price for October 2007 is 0.8 percent above that of October 2006 ($206,950), and the year-to-date median home sales price ($210,000) rose 1.8 percent over 2006 ($206,230).

The number of sales in the lowcountry declined by 22.7 percent in October 2007 compared to October of last year (792 to 1,024). Year-to-date sales for 2007 (10,902 through October) are down by 21.2 percent over the same period in 2006 (13,837). The average time it took to sell a home increased to 3 months (96 days).

“We’ve seen record numbers of homes put on the market this year which lends itself to slightly reduced sale prices in some areas and a longer selling period,” said CTAR President David Kent. “The flip side is, of course, that buyers should be really excited about the selection they have to choose from. And with interest rates and prices so competitive, this really is a great time to buy a home!"

Market Statistics

	October 2006	October 2007	Y-T-D 2006	Y-T-D 2007
Units sold	1024	792	13837	10902
Avg. Days-on-Market	77	96	65	94
Median Price	$206,950	$208,705	206,230	210,000

Inventory
Inventory declined for the fifth month in a row, resting at 10,398 homes available for purchase through the Multiple Listing Service (MLS) as of November 10. There are 1,941 condos for sale, the majority of which (366) fall in the $140,000 - $199,999 price range. Single-family homes account for 8,802 listings. The greatest number (1,789) of single family homes currently for sale are priced in the $140,000 - $199,999 range. As of today there are 1,184 properties under contract.

2007 Current Inventory (On the 10^th)
June	10869
July	10865
August	10806
September	10717
October	10594

Berkeley, Charleston, and Dorchester Counties
In Berkeley County, 211 homes were sold in October 2007 with a median sales price of $176,500 and 91 days-on-market average. Of the 388 homes sold in Charleston County, the median sales price was $264,500. The average days-on-market for these homes was 114. In Dorchester County, 160 homes were sold at a median price of $178,000 with an average days-on-market of 85.

Median Sales Price Comparison
	Oct 2006	Oct 2007	Y-T-D 2006	Y-T-D 2007
Berkeley County	$169,470	$176,500	$171,753	$179,500
Charleston County	$241,000	$264,500	$239,900	$249,058
Dorchester County	$192,687	$178,000	$184,000	$193,606

HOW TO FSBO

2007-12-10T16:20:00.001-05:00

For Sale by Owner

Some people try to sell their home on their own to try to save on commissions. This can get tricky if you don't have the experience, in fact, most For-Sale-By-Owner (FSBO) homes end up listed with a licensed Realtor, a person who knows the market and does this every day.

According to the National Association of Realtors although FSBO may work for some people, on average FSBO homes get a lower net return than those homes sold through the MLS.

Before you consider selling your house on your own, be sure to ask yourself if you are going to have the time, the knowledge and the resources needed to make it a worthwhile experience.

If you still decide to give it a try, here are a few tips that may help you:

The Home

Disclosures - A Seller’s Property Disclosure form is required by SC law. If your home was built prior to 1978, you will also need a Lead-Based Paint Disclosure.

Termites - A Termite inspection (called the CL-100 Certificate) that shows that your home has no termite infestation or damage due to termites or moisture (i.e. most lenders will insist that the CL-100 be clear before closing). If active termites exist, or damage is identified, it would be smart to have a licensed contractor repair all the damage, and a specialized pest control firm treat the home and issue a “termite bond” to guarantee no future infestation.

Repairs - fix all “deferred maintenance” items (all those items on your “to do” list that you never got around to doing). Including plumbing leaks, broken outlets, loose hose bibs, etc. If you don’t do it, there is a good chance that a) Most buyers will not be interested in your home; or b) Any interested buyer will ask for those repairs once they do their inspections.

Spruce It Up – With so many homes on the market, buyers are getting very picky! Only those homes that shine will be looked at! That includes interior and exterior paint, carpets, decoration, staging etc. If you really want to sell, get professional advice to stage your home. Staged homes sell quicker! Remember, this is now a “model home” not your living quarters anymore. No more dirty dishes in the sink, dirty clothes on the floor or dog poop in the yard!

Valuables & Personal Items – Hide all valuable items like jewelry and personal items that would be hard to replace. Lock all weapons away. Store most items that would be “too personal” in nature to prevent a buyer from picturing him/herself as the owner of the home.

The Market

You need to understand where the market is in your particular city, community and neighborhood before you price your home. This means getting access to up-to-date research about:

Recent comparable sales in the last 6 months (the absorption or demand)
The Competition (available inventory of comparable homes, their list prices and condition, their history on the market) (NOTE: For Belle Hall, you can look at MyBelleHall.com)
The list of homes that were on the market but did not sell (expired and withdrawn)
Interest rates & other economic indicators for your area that may tell a story about where the market is going.

Tip: You can do research on the Internet, starting with the county tax records to view the sales, Realtor’s websites to view the MLS listings, and driving around the neighborhood.

How Are You Going to Sell Your Home?

If you are really willing to put in the time and effort to sell your home, you can be smart about it: 80% of the potential buyers are researching their future purchases on the Internet. And more than 40% get the MLS listings through their Realtor. So you would be wise to focus on these two segments to maximize your efforts and get “bang for the buck”:

Send information about your home to all active Realtors in the area (make sure you offer full commission to the Buyer’s Agent who brings you a buyer – remember that Realtors operate on commission only!
Take advantage of popular times for Open Houses in your neighborhood and open your home at the same time – make sure you have adequate signage.
Always keep up to date flyers in the flyer box on your yard. ALWAYS have a phone number where someone answers the questions a buyer may have. You do not want to lose opportunities by not being available.
Place your house on a website and make sure it is easily accessible for everyone, including Realtors
Be as flexible as you can with showing times. The more flexible you are, the better chances you have.
Place pets in the garage, in cages or in the backyard. Some people do not like dogs/cats, even if they seem part of your family to you!

Tip: You need to be careful about letting unknown people into your home. When people come with a Realtor, at least the Realtor is a known entity (licensed, registered, with background check, etc.). Make sure you get their business card and ask which office they work for. You can also ask to see their Realtor license if you are not sure of their background. It is advisable to have someone with you at all times, and carry your cell phone with a police number on quick dial just in case. Always follow people, never go first. Try to keep multiple people parties together to avoid theft. Have escape plans ready in your mind. Alert neighbors when you are showing your home – so that they keep an eye out for you.

How Solid is The Buyer?

After the sub-prime loan meltdown, there are a lot of “wishful thinking” buyers around for whom it may be almost impossible to get a loan. Ask questions, just as a listing Realtor would:

Are they buying the home cash – or do they need a loan? If they are buying cash – where do they have the money? Is it readily available?
If they need a loan, are they pre-qualified, or pre-approved for a loan? What percentage of the value do they need to borrow?
Do they need to sell their home elsewhere before they buy yours? If their purchase must be contingent on the sale of their own home, is the home on the market now? How long has it been on the market? What’s the market like where they are selling? Would the buyers consider a contract with a kick-out clause to eliminate this contingency if you find another buyer who does not need it?

Negotiations, and Contract-to-Closing

Are you prepared to negotiate the terms of the contract?
Do you know what the legal responsibilities of the seller are in SC?
Who will write the contract? What form will you use? Which attorney will close the agreement? Who is going to pay for the closing costs? When are the Buyers doing their inspections?

Tip: It is best to think about these things before you start negotiating. Detemine what your ultimate “bottom line” must be, and have a friendly attorney ready to give you legal advice if needed.

NOTE: If you are planning to offer your home as a FSBO, I can place your information for free on my website http://www.mybellehall.com/. Please contact me on (843) 864-3777.

RETIREMENT COMMUNITY PLANNED NEXT TO BELLE HALL

2007-11-30T17:14:00.000-05:00

By Molly Parker , Staff Writer, Daily Journal

Georgia

developer is asking the town of Mount Pleasant for permission to build a new retirement community off Seacoast Parkway that would include 25 duplexes and a 200,000-square-foot complex with apartments.

Church Design & Construction, based in Snellville, Ga., is poised to purchase a parcel totaling nearly 46 acres west of the Belle Hall subdivision and parallel to Interstate 526.

The development would occupy about 33 acres of what is now woodlands with the continuing-care retirement community building standing as the focal point.The structure would include 120 independent-living apartments and up to 60 assisted-living and/or skilled-nursing beds, according to documents filed with the town’s planning department.

The planning commission will consider the proposal at its next meeting at 5 p.m. on Wednesday, Dec. 19. The developer could not be reached for comment.

The 25 duplex cottages planned for the community “are situated to instill a sense of neighborhood at the entrance to the project and also provide a residential edge adjacent to the existing Grassy Creek subdivision,” the document states.

The Grassy Creek subdivision would be a next-door neighbor to the development and separated by a 25-foot buffer. The remaining 13 acres of the site under the plan would be dedicated to office and retail uses associated with the retirement community.

Internet Marketing vs. Print Advertising

2007-11-27T12:13:00.000-05:00

The National Association of Realtors (NAR) performs an annual national survey of home buyers to identify trends. The 2007 survey from NAR indicates that most buyers are going online to search for their next home, and that online advertising produces over 9 times the results of newspaper advertising.

The Internet continues to be the up-and-coming medium to advertise homes for sale. Here are some of the results of the 2007 survey, including the changes from last year’s survey:

WHERE BUYERS FIRST LEARNED ABOUT THE HOME THEY PURCHASED:

Real Estate Agent— Still number one, but down to 34% from 36%
Internet— Up to 29% from 24%, BIGGEST MOVER!!!
Yard Sign— Down to 14% from 15%, continues to decline
Friend or Relative— Steady at 8%
Home Builder— Steady at 8%
Print newspaper— Down to 3% from 5%, biggest drop
Directly from Seller— Steady at 3%
Home Book or Magazine— Steady at 1%

However, many Sellers are still demanding that listing agents advertise their home in newspapers and magazines. This is probably not the best use for their agent's time or marketing dollars!

When you choose your next listing agent, make sure that he/she is e-savvy and e-connected, and that your home is advertised extensively online to reach the maximum number of potential buyers – this will make a difference!

THINGS YOU NEVER KNEW YOUR CELL PHONE COULD DO

2007-11-19T17:35:00.000-05:00

There are a few things that can be done in times of grave emergencies. Your mobile phone can actually be a life saver or an emergency tool for survival. Among the things that you can do with it:

FIRST - Emergency

SECOND - Locked Car remote keyless access.

THIRD - Access Hidden Battery Power.

FOURTH - Disable your phone if STOLEN

FIFTH - Free directory Service

For the full story, click HERE.

THE MORTGAGE MARKET THIS WEEK

2007-11-19T13:02:00.000-05:00

The Week in Review:

It was a relatively quiet week for mortgage rates last week. We continue to hear news of various financial institutions taking large write offs relating to the subprime market but the “Wow” of it seems to have died off. The market understands it and has adjusted expectations accordingly. This morning, however, Goldman Sacks downgraded Citigroup to a “Sell” from a “Hold” position saying that there may be another $ 4 Billion to write off related to subprime losses. This news is hurting the stock market and bonds are benefiting! It’s a crazy market.

The big news last week did not move the market but came from the Fed Chairman, Ben Bernanke. Mr. Bernanke announced that the Fed would be doubling its communications effort as it relates to the economy and the Feds forecasts. This is viewed positively and is a significant departure from Alan Greenspan’s approach where the market was often left scratching its head after his encrypted communications. So, we are hoping that more is better in this case.

The Week Ahead:

This is a short trading week given Turkey Day on Thursday. The market will be closed on Thursday and open only half days on Wednesday and Friday. So, the most interesting thing happening this week will be news on Housing Starts and Building Permits which comes out on Tuesday.

I anticipate a slow week and recommend locking rates as they continue to be very strong!

Have a great Thanksgiving!

Rates:

Conforming ($417,000 or less)

30yr Fixed 5.875%
5yr ARM 5.500%
7yr ARM 5.750%

Jumbo (Greater than $417,000)

30yr Fixed 6.500%
5yr ARM 5.625%
7yr ARM 6.125%

Justin Whitney, Home Loan Consultant
C- 843-270-8366
justin_whitney@countrywide.com
www.loansbyjustin.com

LATEST MARKET INDICATORS (NOV 07)

2007-11-16T11:33:00.000-05:00

Market Indicators for Single Family Homes (SFD)

(To view the whole article, including the supporting graphs, please click HERE)

We are still selling a considerable number of homes in the Charleston area: Sales activity is back to 2004 levels, which was not a bad year!. So why is it that all the news that you read about real estate are bad these days? My opinion is two-fold:

a) Good or encouraging news don't sell! Newspapers and media want big headlines that make the news. So they choose whether to look at the glass half-full or half-empty, according to their view of which headling will do better for their sales. Right now they are looking at a half-empty glass...

b) It is true that we have a very high level of inventory. But we are comparing today's levels with the 3 "hottest" years for real estate in recent times (04-06), where inventory was extremely low! The trends are encouraging, we are seeing a lot fewer speculative homes being built, and the inventory seems to be coming down. The real test will come in the first quarter of next year!

How does this compare with Mt. Pleasant and Belle Hall? Inventory in Mt. Pleasant did increase more dramatically than in the metro area as a whole, since it trebled from the 2004-05 level.
But the current trend is to stabilize and decrease. For the whole of Mt Pleasant, we can see sales activity regressing to 2003 levels (a little slower than the metro average), but still
selling a substantial number of homes per month.

Belle Hall sales statistics show that this market appears to be more resilient than Mt. Pleasant as a whole, but because the sample size is smaller, we can see more fluctuation, which makes it harder to identify patterns. Inventory levels in Belle Hall, although high compared to 2004-05 levels, have shown the strongest trend to decrease, compares to the whole of Mt. Pleasant and the rest of Charleston. This is certainly good news for Belle Hall owners looking to sell in 2008!

NEW HOME BUILDERS OFFERING BIG INCENTIVES

2007-11-09T17:28:00.000-05:00

These days my "in-box" fills up every day with "Special Offers" from builders and developers giving away freebies, increased commissions and buyer incentives. Some are offering to pay closing costs, upgrades, extra rooms, etc. Others are thinking a little outside the box: One recently offered a 2-year membership to Freedom Boat Club to whomever bought one of their new townhomes in Johns Island!

Although these incentives may work to lure home buyers, I always recommend to my clients that they view them with some skepticism. It is also important to find out:

Have the developers increased their prices recently, just before "giving away" the discounts? (i.e. is it a "perceived" sale and not a real one)
Have they been successful selling the subdivision, or are there any other issues that are important to know? (i.e. are there any widespread construction quality problems, problems with utilities or pending assessments on the HOA, etc.)
Is the developer is a publicly traded company (these companies are driven by quarterly results and are able to effect larger discounts to get inventory off their books just in time for reporting to shareholders)
Are the offers "gimmicks" or items of real value?
At the nominal contract price, is it likely that the home will appraise given recent comparable sales activity?
Is it a "spec" home - is it already completed or about to be completed? Builders are more negotiable on "spec" homes than on new construction, given they need to reduce their carrying costs.

Don't get me wrong, there are REAL BARGAINS out there (just recently a 2,600 sq. ft. brand new home in Summerville was being offered for $72 per square foot - you probably could not BUILD it for that price, without even counting the cost of the land!

Many national and local builders want to see their inventory homes off their books before the end of the year!

Happy home buying!!!

BUYERS OVERWHELMED WITH CHOICES

2007-11-09T17:12:00.000-05:00

With around 10,000 active listings in the Charleston Metro Area, buyers can get a little overwhelmed when looking at available homes, unless they have a "plan of attack" that helps them narrow those choices.

Have you tried to buy a home lately? Your Realtor will show you many times the number of choices that you would have had two years ago. This proliferation makes it difficult to decide! Unless you have a "photographic" memory, you will probably get somewhat confused by the time you look at the 15th home! I have seen many buyers get "brain freeze" when it comes to making a decision, just because the amount of information becomes overwhelming...

When I work with a buyer client, I prefer to implement a "drill down" approach to the search, designed to narrow choices from the general to the specific. Therefore we first work on identifying preferred areas/neighborhoods, then subsections and maybe streets! This then makes searching for a particular home much simpler!

Once we are ready to look for a specific home in a neighborhood, here's what I recommend to my buyer clients (I tell them this may not work for everyone - it works for people like me, who like numbers):

1. Take abundant notes at every showing. Most people will forget details by the time they look at their 10th home! If you take notes and identify salient characteristics of each home, this will help you later.
2. Design a "Criteria Grid" where you write and prioritize your buying criteria, assigning relative importance to each criterion.
3. Rate every home you view against your buying criteria. This will produce an "absolute grade" for each home which may help you decide between homes that are "tied" in your mind...

In addition:

Check your criteria grid grading against your emotional and "gut feel";
Ask your Realtor to help you choose by playing "devil's advocate"
Don't act until it feels absolutely right! These days you will not need to rush into making a decision (unless the price is very right!)

WHERE IS THE HOUSING MARKET GOING?

2007-11-05T18:26:00.000-05:00

This is a question we get asked many times a day. My sellers want to know if they are going to lose more equity. Buyers want to wait until the market bottoms. Lenders and appraisers are caught between making money and taking risks.

My answer: Contrary to what the media says (daily), we are still selling homes at a reasonably good rate in the Charleston metro area. Sales volumes are now at the 2003 level (which was not a bad year!). Yes, there is downward pressure on prices (but please remember that prices went up 20%-30% per year in certain markets from 2003-2005, and yet the only ones complaining were first home buyers who could not get into the market). And yes, there is a large inventory that is slowing down any recovery.

The toughest competition for existing home sales are now new home builders. Because most of these are national, publicly traded companies looking to improve their quarterly balance sheets, they are discounting their prices aggressively to effect sales. And they do it mostly in the shape of incentives, so their deals are not always evident from looking at the recorded sales prices (closing costs, free upgrades, decorating allowances - there is even one developer offering free two-year membership to the Freedom Boat Club if you purchase one of their townhomes!)

This means that if you are unlucky enough to have bought in the last two years, and you live in a community where the original developer/builder is still offering your floor plan as new construction, there is very little chance that you can sell your home without losing money.

Big developers can take the hit! and they do, when they sell at a loss they take the write-off and their shareholders will be the ones paying for this short-term mentality in the long run. Having said this, I think that it is about the right time to start looking at buying select stocks in corporate building companies, after these writeoffs, when the shares are lower. I believe they will bounce back sharply. One simple reason: Demand and supply. More people, limited land.

That's why I thing that the Charleston market will rebound quicker than the average town and I am very optimistic for next year - despite the doldrums, we have lots of factors in our favor: The retiring baby-boomers (just starting), increasing employment, growing medical and financial services and a strong military presence.